Financial wellbeing is more of a journey than a destination, and it is a personal one. To help build confidence in your finances, there are some simple steps you can take.
Firstly, understanding what financial wellbeing means to you is crucial. At Arbuthnot Latham, financial wellbeing encompasses your relationship with money, including your knowledge, confidence, and resilience with finances, as well as the support you receive from financial services. However, financial wellbeing can vary greatly from person to person. For instance, our survey revealed significant differences in financial worries based on location, with 88% of Londoners expressing concern about their finances compared to 67% of people in Northern Ireland. Additionally, our report highlights a notable discrepancy between men’s and women’s expectations for their pension pots, with men averaging £934,957.26 and women £829,109.264—a difference of over £100,000. What truly matters is taking the time to consider what is important to you and what you want to achieve in your financial plan.
Next, it’s essential to distinguish between financial security and financial wellbeing. While there’s a link between the two, they are not the same. Our study found that 91% of people under 35 are concerned about money, whereas 37% of those over 65, who are traditionally more financially secure, say they never worry about money. Despite the general affluence of our respondents, 87% expressed concerns about the economy; 39% were anxious about their investments, 25% worried about providing for future generations, and 21% were concerned about mortgage payments. These figures suggest that financial concerns are widespread, regardless of wealth. If you find yourself worrying about money, it might be worth stepping back and considering whether there’s a way to alleviate some of that stress.
Finally, getting the right support is vital. Shockingly, only 30% of our survey respondents felt able to talk to their bank about significant life events. This indicates that many people have the financial resources to achieve wellbeing but lack the necessary support. While digital tools are useful for day-to-day finances, speaking directly to a professional who understands your situation is crucial. It’s also important to discuss your goals, obligations, and family views before seeking financial advice. By considering these factors, you can start developing a solution. Financial wellbeing involves setting clear goals and having a plan to reach them. However, life is unpredictable, so regular check-ins are necessary to ensure you’re still on track and satisfied with your progress.
To summarise, achieving financial wellbeing requires taking time to think about what makes you happy and what you want to achieve in life. It’s important to speak openly with your family to understand their goals and expectations, consult a professional who takes the time to understand your needs, ensure you are content with your financial plan, and regularly track your progress. Have your goals changed? How are you tracking against your plan?
Remember that financial wellbeing is an ongoing process that involves setting clear goals, getting the right support, and regularly reassessing your progress to ensure you remain on track.
Arbuthnot Banking Group PLC (LON:ARBB), trading as Arbuthnot Latham, provides private and commercial banking products and services in the United Kingdom. Founded in 1833, Arbuthnot Banking is based in London, United Kingdom.
